South Korea plans to im­port Ira­nian LNG

Iran Daily - - Front Page -

State-run Korea Gas Corp. (KOGAS), the world’s se­cond-largest sin­gle buyer of liq­ue­fied nat­u­ral gas (LNG), said it plans to im­port nat­u­ral gas from Iran as well as ex­plore op­por­tu­ni­ties to ac­quire stakes in gas fields in the coun­try.

A KOGAS of­fi­cial said the com­pany was look­ing to di­ver­sify its im­port sources as sup­ply con­tracts with Qatar and Oman were set to ex­pire by 2015, Press TV re­ported.

“Iran is rich in nat­u­ral gas so we would like to work closely with both pub­lic and pri­vate en­ergy com­pa­nies there,” the of­fi­cial was quoted as say­ing by the Korea Times. In May 2016, Iran awarded a deal to con­duct tech­ni­cal stud­ies on the off­shore Balal gas field in the Per­sian Gulf to KOGAS.

An Ira­nian of­fi­cial said in June that the coun­try was work­ing on a plan to de­velop small-size gas liq­ue­fac­tion units with South Korean com­pa­nies, in­clud­ing KOGAS. Saeed Pak­seresht, di­rec­tor for re­search and de­vel­op­ment af­fairs of the Na­tional Ira­nian Gas Com­pany (NIGC), was quoted as say­ing that a con­sor­tium from Iran and an­other from South Korea, in­clud­ing Oceanus and KOGAS, would be in­volved in the scheme.

“We do not have the technology to de­velop mini-lng plants, but join­ing hands with com­pa­nies such as Oceanus con­sor­tium and KOGAS is an im­por­tant first step to de­velop our LNG sec­tor,” he said.

Korean com­pa­nies are also ex­pand­ing in­volve­ment in Iran’s mas­sive oil sec­tor. Last month, South Korea’s SK En­gi­neer­ing and Con­struc­tion Co (SKEC) signed heads of agree­ment for a €1.6 bil­lion up­grade of Tabriz re­fin­ery.

A sep­a­rate $2 bil­lion con­tract is about to be signed with South Korea’s Dae­lim com­pany to boost oil pro­cess­ing ca­pac­ity at Is­fa­han re­fin­ery, ac­cord­ing to Ab­bas Kazemi, who is Iran’s deputy oil min­is­ter.

South Korea’s im­ports of Ira­nian crude oil in­creased 40.2 per­cent in Au­gust from the same month a year ear­lier, Reuters re­ported on Fri­day, cit­ing cus­toms data.

The Asian coun­try is a ma­jor client of Iran’s con­den­sate, an ul­tra-light high qual­ity oil. Ac­cord­ing to the Reuters re­port, South Korea im­ported 12.22 mil­lion tons, or 368,529 bpd, of oil from Iran in the first eight months of 2017 — up 46.7 per­cent from 8.33 mil­lion tons dur­ing the same pe­riod the year be­fore.

Mean­while, Royal Dutch Shell said it is pre­par­ing to bid for de­vel­op­ment of Iran’s gi­ant Azade­gan field af­ter putting an end to a cen­tury of oil pro­duc­tion in neigh­bor­ing Iraq.

Shell has sub­mit­ted the re­sults of its fea­si­bil­ity stud­ies on South Azade­gan and Ya­davaran fields to Na­tional Ira­nian Oil Com­pany (NIOC), Shana re­ported.

Both fields lie across the Iraqi bor­der in Iran’s strate­gic West Karoun oil clus­ter. Shell signed a ba­sic agree­ment with NIOC in De­cem­ber 2016 to study the in­vest­ment po­ten­tials in South Azade­gan and Ya­davaran as well as Kish gas field. South Azade­gan, dis­cov­ered in 2001, has re­cov­er­able re­serves of about two bil­lion bar­rels. It is be­lieved to be con­nected with Iraq’s Ma­jnoon field from which Shell has de­cided to with­draw.

Newspapers in English

Newspapers from Iran

© PressReader. All rights reserved.